Olga is the proprietor of a small business. In 2013, the business income, before consideration of any

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Olga is the proprietor of a small business. In 2013, the business income, before consideration of any cost recovery or § 179 deduction, is $250,000. Olga spends $600,000 on new seven-year class assets and elects to take the § 179 deduction on them. She elects not to take additional first-year depreciation. Olga's cost recovery deduction for 2013, except for the cost recovery with respect to the new seven-year assets, is $95,000. Determine Olga's total cost recovery for 2013 with respect to the seven-year assets and the amount of any § 179 carry-forward?
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South Western Federal Taxation 2014 Comprehensive Volume

ISBN: 9781285180922

37th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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